BMO Investment Chief Says Big Markdown Is Coming in Private Assets

  • PE firms can’t deny reality with stocks way down, CIO says
  • KKR, Carlyle and other firms have reported sliding earnings
Photographer: Brent Lewin/Bloomberg
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Private equity firms and pension funds will soon face a reckoning as they adjust their private holdings to reflect lower valuations, according to the chief investment officer of BMO Global Asset Management.

There’s “going to be a big markdown,” Sadiq Adatia said in an interview. “That might be worse than getting that pain gradually over the year.”